In this episode of A.M.BestTV, Steve Kinion, director of the bureau of captive and financial insurance products, Delaware Insurance Department, said the state now allows selected captive organizers to launch captive insurers upon submission, with six months to establish permanent licensing. Click on http://www.ambest.com/v.asp?v=kinion1118 to view the entire program.
Kinion highlighted the achievements of the Delaware captive industry in 2017 and 2018.
In 2017, we grew our total captive insurance premium by $8.1 billion, Kinion said, noting that Delaware finalized the year with $12.5 billion in total captive insurance premium. That makes Delaware the fastest-growing U.S. captive insurance domicile in terms of captive insurance premium.
Kinion noted another milestone with the adoption of licensing that will allow captive insurance companies to file their annual financial statement, as well as their premium tax payment, on April 15, as opposed to the prior date of March 1. This allows an extra six weeks for a company to make a better annual financial statement to submit to us, as well as a more accurate premium tax statement.
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Kinion also spoke about Delawares flagship achievement for this year: its conditional licensing program. He explained that conditional licensing is a speed-to-market system, which allows for a captive to receive its conditional license on the same day its application is submitted to the Delaware Insurance Department. This is accomplished through its web-based protocol system. We have received a tremendous amount of interest in this program because it offers to a captive insurance company the availability of a license on the same day of application, he said. Consider this, most applications require a 30- to 45-day period in which to review it. Because we know our customers in this area, we are willing to issue a conditional license and then during the six-month period, we will review the application.
Recent episodes of A.M.BestTV include:
- Life Insurers See a Plethora of Promising, Daunting Paths to Innovation: At the 2018 LIMRA Annual Conference attendees said life insurers have embraced innovation and technology, but need to continue to improve legacy functions: http://www.ambest.com/v.asp?v=limra11118.
- Winds of Disruption Challenge Life Insurers’ Long-term Focus: Attendees at the 2018 LIMRA Annual Conference said many insurance organizations are built around long-term outlooks and processes, making it difficult to make the large financial and organizational commitments needed to adapt to new forms of competition and disruption: http://www.ambest.com/v.asp?v=limra21118.
- Regulatory Changes and Growth Set to Boost Reinsurers Share of Asia Risk: Attendees at the annual Singapore International Reinsurance Conference said market growth, combined with regulatory changes that emphasize solvency standards, should raise the amount of insurance premiums collected in Asia that is ultimately ceded to reinsurers: http://www.ambest.com/v.asp?v=sirc21118.
- Reinsurance Pricing in Asia Struggles to Keep Up With Loss Activity: Attendees at the Singapore International Reinsurance Conference said some insurers and some regions may see higher rates when reinsurance agreements renew, but overall market pricing is constrained by plentiful available risk capital: http://www.ambest.com/v.asp?v=sirc11018.
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